document.write( "Question 1170478: A man is considering the purchase of a used automobile. The total price is $6200. With $1240 as a down payment, and the balance to be paid in 48 equal monthly payments with interest rate at 12% compounded monthly. The payments are due at the end of each month. Determine the monthly payment required.
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Algebra.Com's Answer #851132 by ikleyn(52786) $\"\"$ $\"About$

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\n" ); document.write( "A man is considering the purchase of a used automobile. The total price is $6200.
\n" ); document.write( "With $1240 as a down payment, and the balance to be paid in 48 equal monthly payments
\n" ); document.write( "with interest rate at 12% compounded monthly. The payments are due at the end of each month.
\n" ); document.write( "Determine the monthly payment required.
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document.write( "The loaned amount is  $6200 - $1240 = $4960.\r\n" );
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document.write( "To find the monthly payment M, use the formula\r\n" );
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document.write( "    M = \r\n" );
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document.write( "where L is the loan amount of $4960; \r\n" );
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document.write( "r =  = 0.01 is the effective compounding interest rate per month;\r\n" );
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document.write( "n is the number of payments (48 in this problem, as given).\r\n" );
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document.write( "Substitute these values into the formula and get for monthly payment\r\n" );
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document.write( "    M =  = $130.62  (rounded).\r\n" );
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document.write( "Thus, the monthly payment is $130.62.    ANSWER\r\n" );
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